Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.

Thursday, January 28, 2016

WHO MUST FILE A 2015 TAX RETURN

Do
you have to file a 2015 tax return?Let’s
review.

Generally,
you do not have to file a 2015 Form
1040, or 1040A, unless your “gross income” is at least -

Single
= 10,300

Single,
Age 65 or Older = 11,850

Head
of Household (with one dependent) = 17,250

Married
Couple = 20,600

Family
of 4 = 28,600

Married
Couple, Both 65 or Older = 23,100

“Gross
income” means “all income you received in
the form of money, goods, property, and services that is not exempt from tax,
including any income from sources outside the United States or from the sale of
your main home (even if you can exclude part or all of it). Do not include any
social security benefits unless (a) you are married filing a separate return
and you lived with your spouse at any time in 2014 or (b) one-half of your
social security benefits plus your other gross income and any tax-exempt interest
is more than $25,000 ($32,000 if married filing jointly).”

Gross
income includes gains, but not losses, reported on Form 8949 or Schedule
D.If you are a sole proprietor filing a
Schedule C, gross income is the amount reported on Line 7 of Part 1 – gross
receipts less returns and allowances and cost of goods sold plus “other income”.And if you are a landlord gross income
includes the gross rents reported on Schedule E.

So
you see that the filing requirements are not based on actual "net"
taxable income.For any type of business
income or capital gains the income before deducting any expenses or deducting
the cost basis of investments sold is counted.You must file a return to identify the expenses and cost basis.

You
must file a tax return for a dependent if any of the following applies –

·unearned
income is more than $1,050,

·earned
income is more than $6,300, or

·gross
income is more than the greater of $1,050 or the sum of $350 and the
individual's earned income (total not more than $6,300).

Regardless
of your gross income, you generally must file an income tax return if –

·you
failed to take a required minimum distribution from a retirement plan,

•
you must repay the 2008 Homebuyer Credit,

•
you owe Social Security and Medicare taxes on unreported tip income, or

•
you received an advance payment on the Premium Tax Credit.

And,
whether or not you are required to do so, you should file a tax return to get a
refund of tax withheld or to take advantage of a refundable tax credit like the
Earned Income Credit or the Additional Child Tax Credit.

Another
reason to file a tax return, even if you
are not legally required to do so, is to start the clock running on the
normally 3-year statute of limitations for IRS audit or review of a return.

The
numbers for individual state income tax returns differ.You may not have to file a federal return,
but you must, or should, file a state return.For example, the State of Pennsylvania is a gross income tax with no
personal exemptions or standard, or itemized, deductions.You must file a PA-40 and pay the 3.07% flat
state income tax if “you received total
PA gross taxable income in excess of $33”.

So
if you do have to file, or want to file, a 2015 tax return get thee to a tax
professional.

No comments:

Follow by Email

CLICK ON THE ABOUT IMAGE TO CHECK OUT MY NEW E-BOOK

AIN'T THAT THE TRUTH!

DONALD T RUMP HAS NOT DONE A SINGLE THING THAT IS "APPROPRIATE" OR "ACCEPTABLE" FOR A CANDIDATE OR A PRESIDENT SINCE THROWING HIS HAT INTO THE RING.EVERY SINGLE DAY TRUMP PROVIDES MORE PROOF THAT HE IS AN IGNORANT, SELF-ABSORBED, UNFIT, MENTALLY UNSTABLE IDIOT, AND A DEPLORABLE AND DESPICABLE HUMAN BEING.TRUMP MUST BE REMOVED FROM OFFICE FOR MENTAL INCOMPETENCE ASAP! PLEASE READ AND SHARE THIS - THE TRUTH ABOUT TRUMP'S MENTAL CONDITION

Donald T Rump has not done a single thing that anyone with intelligence would consider “appropriate” or “acceptable” for a President since deciding to run for office.

Every single day Trump provides more proof that he is an ignorant, self-absorbed, unfit, mentally unstable idiot, and a deplorable and despicable human being, who must be removed from office ASAP.

VERY IMPORTANT -

(1) Before contacting me with questions about how a blog post relates to your specific situation, please be aware that I do not give free tax advice to non-clients by e-mail, comment response, or phone. So don't waste your time and mine.

(2) I am winding down my tax practice, and I will not, under any circumstances, accept any new clients. Period. I am actually trying to "thin the herd".